The Chartered Institute of Bankers of Nigeria (CIBN) has urged banks to deploy the N4.65 trillion raised through the recently concluded recapitalisation exercise to Micro, Small and Medium-sized Enterprises (MSMEs) to stimulate economic growth. The banking sector recapitalisation exercise ended on March 31, 2026, after a 24-month implementation period. The Central Bank of Nigeria (CBN) said 33 lenders successfully met the new capital requirements, raising a combined N4.65 trillion. Speaking at a press briefing in Lagos ahead of the CIBN 19th Annual Banking and Finance Conference, the President of the institute, Dele Alabi, said the banking sector had a critical role to play in strengthening the economy. Alabi explained that while recapitalisation provides banks with a stronger buffer against economic shocks and protects their balance sheets, lenders must also deploy the additional capital strategically. “Capitalisation provides a buffer for shocks. It sort of insulates banks’ balance sheets. But it does not stop there. Therefore, smart bankers, smart bank CEOs have to think of a more ingenious way of utilising this capital,” he said. He noted that equity capital was expensive and should therefore be deployed efficiently to generate economic value. “Capital is not cheap. Capital is the most expensive source of funds. Equity capital is more expensive than debt capital. Therefore, bankers are prepared to utilise and deploy the recent huge capital that we have with a view to supporting the economy more,” Alabi said. He particularly urged banks to expand lending to MSMEs, describing the sector as a major engine of economic activity and employment. Alabi disclosed that CIBN would introduce initiatives aimed at improving MSMEs’ access to finance and strengthening their capacity. He said the institute would organise MSME forums where businesses could engage directly with banks and work towards closing financing transactions. The CIBN president also announced plans for SME clinics to help businesses address some of the challenges limiting their growth and sustainability. “MSMEs are the ones that drive the economy. But in Nigeria, MSMEs have not been provided with the enabling environment to survive,” he said. On the theme of the forthcoming conference, “Building a Resilient Economy in an Era of Disruption: Strategic Imperatives for the Banking and Financial Services Industry,” Alabi described it as timely. He said technological disruption, geopolitical uncertainties, changing customer expectations, cybersecurity threats and climate-related challenges had made resilience an increasingly important requirement for financial institutions and economies.
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